A00-240 Exam QuestionsBrowse all questions from this exam

A00-240 Exam - Question 20

Refer to the exhibit.

Output from a multiple linear regression analysis is shown.

What is the most appropriate statement concerning collinearity between the input variables?

Collinearity is a problem since all variance inflation values are less than 10.

Collinearity is not a problem since all variance inflation values are less than 10.

Collinearity is not a problem since all Pr>|t| values are less than 0.05.

Collinearity is a problem since all Pr>|t| values are less than 0.05.

Show Answer

Correct Answer: BC

Collinearity, or multicollinearity, is assessed using the Variance Inflation Factor (VIF). Generally, a VIF value exceeding 10 is considered indicative of multicollinearity problems. In this case, all the VIF values for the variables are well below 10, indicating that collinearity is not a problem in this regression analysis.

Discussion

3 comments

lpakOption: B

Jul 23, 2020

The correct answer is B

PerkDizzzle

Oct 25, 2020

I agree with Ipak.

chuckOption: B

Mar 14, 2021

The correct answer is B